Fitch upgrades MGM

Fitch Ratings said it upgraded MGM Mirage's issuer default rating to CCC from C, senior secured notes to B/RR2 from CCC/RR2, senior credit facility to B-/RR3 from CC/RR3 and senior unsecured notes to CCC/RR4 from C/RR4. The senior subordinated notes were affirmed at C/RR6.

The action reflects the company's planned $2.5 billion capital raise and the amendment of its credit facility, according to the agency.

The upgrade of MGM's issuer default rating to CCC reflects the reduction of near-term restructuring risk, Fitch noted.

The CCC issuer default rating also reflects the fact that MGM will remain a highly leveraged gaming operator with high exposure to the Las Vegas Strip, a market that is likely to continue to be under significant operating pressure in upcoming quarters, the agency said.

The rating also incorporates the company's heavy debt maturity schedule in 2010 and beyond, and the uncertainty of the impact that the late 2009 opening of CityCenter may have on MGM's wholly owned properties, the agency said.

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